Joe Lonsdale, managing partner of 8VC, joins ‘Mornings with Maria’ to discuss Donald Trump’s cabinet picks and their impact on his political agenda.
President-elect Trump’s team is looking to end the $7,500 tax credit for electric vehicles established during the Biden administration, Reuters reported on Friday.
Citing two sources familiar with the situation, the agency said Trump’s team plans to eliminate the EV tax credit as part of a larger tax reform package.
President-elect Trump’s team is aiming to end the tax credit for buying EVs, Reuters reported on Friday. (Chip Somodevilla/Getty Images/Getty)
FOX Business has reached out to Trump’s transition team for comment.
A tax credit for the purchase or lease of certain EV and plug-in hybrid models was passed as part of Biden’s signature Inflation Reduction Act of 2022. There are 15 EV and six plug-in hybrid models eligible for government subsidies, according to Car. and Driver.
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For months Trump has vowed to “repeal” the IRA, the Democrats’ tentpole climate and the Clean Energy Act that provides $369 billion in subsidies aimed at reinvesting in EV and battery production and new wind and solar projects.
President Biden signs Inflation Reduction Act of 2022 Aug. 16, 2022. (Demetrius Freeman/The Washington Post via Getty Images/Getty Images)
Trump has described the law as “the biggest fraud in history,” but, on his own, it is unclear what steps he would take to reverse the law.
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Although Trump will have the support of many Republicans in both the House and Senate early in his second term, he is unlikely to completely overturn the IRA, in part because most of the funds are earmarked under the law to help finance the structure. – exits from clean energy projects and production facilities have been phased out.
Most of the funding, in fact, went to Republican-led states.
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Some obstacles exist. Since the IRA is law, Trump could not go it alone reverse the law.
But he can take some steps to limit eligibility for certain tax credits or incentives.
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When he returns to the Oval Office, Trump can tighten restrictions on car makers it qualifies for the EV tax credit, raising production costs, too, making EVs more expensive for consumers.
Breanne Deppisch of FOX News contributed to this report.
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